Wal-Mart Stores, Inc. (NYSE: WMT) has long had a branding and imaging problem, one I have covered extensively here in the past. At the same time, competitor Target Corp. (NYSE: TGT) has successfully positioned itself as the more hip discount shopping alternative. Although both companies essentially sell the same products at the end of the day (marketing execs, feel free to chime in), Target has proven that a superficial image, hip marketing and a bright appearance (like the bright red corporate color) matter. In fact, they matter in a huge way.

Would most Target customers describe the retailer as a chain that sells "commodity" products? My guess is they wouldn't, despite the fact that it does. On the other hand, would many Wal-Mart customers describe the world's largest retailer as a hip, cheery company with an eye for the overall shopping experience? My guess here also that they wouldn't, but rather call Wal-Mart the best outlet for rock-bottom prices on everyday commodity products. Problem is, that image is no longer translating into sales growth that Wal-Mart's shareholders and the financial markets require. Hence, we have a problem.

It's hard to pinpoint the branding problems Wal-Mart has. Its "problem" may just be that its aging corporate image is wearing thin with some customers who value an entire shopping experience over price alone. Price got Wal-Mart to where it is now, so it's hard for the company to just abandon what has been a proven strategy. But these may be different retail times, and customer expectations may have shifted. Looking at Target's growth compared to Wal-Mart's growth, some may argue that the retail world and the customers that prop up the chains have indeed undergone a transformation. If Wal-Mart's last remaining image is "low prices" but there is little meaning to the retailer outside that consumer mindset, the company has some major changes to do. I remember that about a decade ago, "Made in the USA" was something the retailer pushed on many of its products. Well, it can't do that anymore since Chinese imports make up the majority of its products. What move is next?